The federal court approved an extension of Regional Express (Rex) Airline's voluntary administration by Ernst & Young (EY) Australia on Thursday 21 November. 

Rex Airlines entered into voluntary administration on 31 July and ceased service between major cities, costing 600 people their jobs and putting regional air service at risk.

The airline found itself in financial difficulty after purchasing a fleet of nine Boeing 737-800s and 57 Saab 340s to compete with Qantas and Virgin Australia, however, that strategy was not as profitable as expected. 

Services to regional cities has remained in place to date, but there are growing fears around the implications for travelers if the airline bows out permanently.

EY requested the extension to set up a business plan to put Rex Airlines up for sale, including increasing the size of the operational fleet.

"On behalf of the EY and Rex teams, our customers, and the communities Rex serves, I'd like to thank Minister King for her strong support for regional Australia," EY Partner Samuel Freeman said.

"Through this plan, we're looking to increase reliability and capacity on the regional routes.

"An extension will not disrupt the continued operation of the regional network which is such a critical part of regional and rural Australia's connectivity.". 

The federal government also pledged $80 million to Rex Airlines as a financial lifeline for Rex to continue to service regional airports, including Dubbo, Parkes, and Armidale. 

"We will also continue to guarantee ticket sales made throughout the voluntary administration to 30 June 2025," Minister for Infrastructure Catherine King said. 

Former employees will maintain access to the Fair Entitlements Guarantee throughout the administration process. 

"I welcome the Federal Court's decision to extend Rex Airline's voluntary administration period to 30 June 2025," MP Mark Coulton said. 

"Rex provides a vital service in the Parkes electorate with the Dubbo and Broken Hill routes connecting people in both of those centres, as well as surrounding towns and villages with the capital cities. 

"It also provides competition for the larger airlines, helping to keep airfares affordable and connections reliable.

"I'm hopeful that this extension and the government's $80 million support package will ensure Rex can remain in the air for our regional communities."

Parkes MP Mark Coulton

 MP Mark Coulton

EY said they secured the sale of the aeromedical subsidiary Pel-Air and other non-core assets and the sale of the regional network will continue during the extension.